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▲ Bitcoin (BTC)/ChatGPT generated image
The virtual asset market, including Bitcoin and Ethereum, has reached the entrance of a massive parabolic rally, driven by the expansion of the manufacturing economy after 40 months and the historical golden cross of the gold-to-copper ratio aligning.
Dan Gambadeollo, host of the cryptocurrency-specialized YouTube channel Crypto Capital Venture, stated in a video uploaded on May 5 (local time) that based on the Manufacturing Purchasing Managers' Index (PMI) breaking above 50 after 40 months and the confirmation of a bottom in the gold-to-copper ratio, the current period is the most crucial time to enter the virtual asset market. Gambadeollo emphasized that macroeconomic indicators are showing the same trajectory as just before Bitcoin (Bitcoin, BTC)'s major bull run in the past, and that this combination of data would be a much stronger upward driver than a simple four-year cycle theory.
The phenomenon of the Moving Average Convergence Divergence (MACD) indicator rising above the signal line in the gold-to-copper chart is a key signal that has appeared without exception just before major surges in November 2012, October 2016, and September 2020. Gambadeollo stressed the need to watch the point where the 20-month moving average turns from resistance into support, and that the relative strength of copper prices, as a sign of economic recovery, leads to massive capital inflows into the virtual asset market, which is a risk asset. In particular, the fact that the PMI has ended a 40-month contraction and entered an expansion phase, coupled with improvements in AI productivity, heralds a bull market within a new economic structure.
Bitcoin has already solidified a bottom after the Relative Strength Index (RSI) passed through the oversold zone on the weekly chart, and is in the process of breaking through the downtrend line on the daily chart. Gambadeollo identified the 200-day moving average, located near $83,400 to $83,500, as the most important short-term resistance. If Bitcoin strongly breaks through this zone, it will enter a full-fledged uptrend, and the final milestone for a confirmed bull market will be whether it settles above the 50-week moving average near $95,000.
Ethereum (Ethereum, ETH) is also reaching the completion stage of an ascending triangle pattern, increasing the possibility of a rebound across the entire altcoin market. Gambadeollo predicted that if Ethereum surpasses the resistance zone between $2,400 and $2,700, a strong buying impulse targeting $3,400 would flow in. Ethereum's technical breakout is expected to act as a catalyst for capital to spread to neglected altcoins, invigorating the market as a whole.
The virtual asset market is facing unprecedented opportunities due to the combination of improving macroeconomic indicators and favorable technical indicators. With Bitcoin and Ethereum poised to break through major resistance levels and open new price horizons, institutional investor participation is expected to accelerate. Market participants should focus on the broader upward trend rather than reacting to short-term volatility, and consider strategic capital allocation.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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